The start of a new tax season brings changes that can impact your filing process. Whether you’re filing as an individual or a business, staying informed is essential to making the most of your return. At Marcus, Fairall, Bristol + Co., PLLC, we specialize in tax preparation in El Paso and can help you navigate these updates. Call us today at (915) 775-1040 to ensure you’re ready for this year’s tax season.
Standard Deduction Increases
For 2024 , the IRS has raised the standard deduction, providing potential savings for many taxpayers. The standard deduction for married couples filing jointly for tax year 2024 rises to $29,200, an increase of $1,500 from tax year 2023. For single taxpayers and married individuals filing separately, the standard deduction rises to $14,600 for 2024, an increase of $750 from 2023; and for heads of households, the standard deduction will be $21,900 for tax year 2024, an increase of $1,100 from the amount for tax year 2023.
Adjustments to Tax Brackets
Tax brackets have been adjusted to account for inflation, which could reduce your overall tax liability. For tax year 2024, the top tax rate remains 37% for individual single taxpayers with incomes greater than $609,350 ($731,200 for married couples filing jointly). The other rates are:
- 35% for incomes over $243,725 ($487,450 for married couples filing jointly)
- 32% for incomes over $191,950 ($383,900 for married couples filing jointly)
- 24% for incomes over $100,525 ($201,050 for married couples filing jointly)
- 22% for incomes over $47,150 ($94,300 for married couples filing jointly)
- 12% for incomes over $11,600 ($23,200 for married couples filing jointly)
The lowest rate is 10% for incomes of single individuals with incomes of $11,600 or less ($23,200 for married couples filing jointly). Understanding where you fall within these updated brackets is crucial to effective tax preparation and planning.
Expanded Eligibility for Tax Credits
Key tax credits have seen updates this year. For instance:
Child Tax Credit (CTC): While the credit amount has reverted to $2,000 per child, the income threshold for full credit eligibility has increased.
Earned Income Tax Credit (EITC): Income limits have been adjusted, offering higher maximum credits for eligible individuals and families.
Energy-Efficient Home Improvement Credit: Taxpayers can now claim up to $1,200 annually for certain energy-saving upgrades, encouraging eco-friendly improvements.
Maximizing these credits requires meticulous tax preparation. Our team is here to guide you through these changes and help you claim what you’re entitled to.
Retirement Contributions and Deductions
Contribution limits for retirement accounts, such as 401(k)s and IRAs, have increased. You can now contribute up to $23,000 to a 401(k) (or $30,500 if you’re over 50). For traditional and Roth IRAs, the limit is $7,000 (or $8,000 if you’re over 50). These increases not only help you save for the future but also provide potential tax deductions during tax preparation.
Reporting Requirements for Digital Assets
The IRS continues to emphasize reporting digital assets like cryptocurrencies. If you bought, sold, or received digital assets in 2024, you’ll need to include this activity in your tax return. Proper documentation is essential, as failing to report these transactions can lead to penalties. At Marcus, Fairall, Bristol + Co., PLLC, we have the expertise to help you accurately incorporate digital assets into your tax preparation.
Enhanced IRS Customer Service
After significant investment in staffing and technology, the IRS aims to improve customer service this year. Taxpayers can expect faster responses and expanded online tools. However, navigating complex tax issues may still require expert assistance. That’s where we come in.
Tax Preparation in El Paso
Preparing your taxes doesn’t have to be overwhelming. With the right support, you can take advantage of new opportunities and avoid common pitfalls. At Marcus, Fairall, Bristol + Co., PLLC, our tax preparation experts are ready to assist you every step of the way. Call us today at (915) 775-1040 to schedule your consultation and ensure you’re set up for success this tax season.